Later today, President Biden will outline legislation that he and his Democrat colleagues claim is about creating jobs and rebuilding our infrastructure. In reality, this plan would increase taxes on hard working Americans, destroy jobs, and spend dangerously high levels of money to fund Green New Deal-style projects.
Hugh Hewitt indicated this morning that President Biden plans to propose the largest tax hike in history, as his framework may call for increasing revenues to the government by more than $3 trillion, according to The Washington Post.
The proposal will raise taxes in a number of areas, departing from the successful policies included in the Tax Cuts & Jobs Act that reduced unemployment to historic lows and led to the creation of one of the strongest economy’s our country has ever seen. While Democrats will argue that increasing the corporate tax rate, hiking the capital gains tax, and increasing certain individual tax brackets will only affect the wealthy, there’s no doubt that the middle class will ultimately be on the hook to pay for this mammoth amount of spending:
- WashEx (Editorial): “Biden’s tax hikes are coming for the middle class”
- The Tax Foundation estimates that Biden’s corporate tax hike would slash 159,000 jobs and that an average 0.7% wage reduction would harm the bottom quintile of workers, who would see a 1.45% decrease in after-tax income. Prices would likely go up, and retirement accounts would be smaller than otherwise. That’s a middle-class tax hike.
- Perhaps he could win in a debate over whether his middle-class tax hikes present and future are a fair trade-off for his spending. But Biden doesn’t want that debate. He can’t admit that he’s taxing anyone but the rich. So, he continues in the falsehood that he’s only taxing the over-$400,000 crowd. We know that’s not true. He knows that’s not true. It’s time Biden admitted he’s raising taxes on the middle class.
Republicans on the House Ways & Means Committee have already shared information about the damaging impact of these potential tax hikes, and spelled out additional details on how the ~$2T-$3T in tax hikes included in this new plan would be bad for the nation:
Democrats refuse to provide job creation estimates in their so-called jobs plan.
- Despite over 70 instances of the word “jobs” in President Biden’s “jobs plan,” Democrats provide no estimates for jobs they would create.
- Democrats have yet to respond to a letter by Republicans in early February seeking an estimate for jobs that would result from their “stimulus” bill.
Democrats’ tax hikes will hurt American workers.
- Ordinary Americans will shoulder a significant portion of Biden’s corporate tax hike. There’s no hiding the fact that this tax hike will take a bite out of Americans’ paycheck.
- Nonpartisan congressional budget scorekeepers estimate that workers will bear about 25 percent of the Biden tax increase, while other economic experts put that share much higher, at 50 percent, or even 70 percent.
- Even workers in the bottom 20 percent of earners would on average see a cut in paychecks in the long run.
Democrats’ tax hikes mean lower wages and less growth.
- According to the Tax Foundation, Biden’s corporate rate increase alone will eliminate 159,000 jobs and reduce wages by 0.7 percent.
- Biden’s tax hike to 28 percent, in addition to state taxes, would drag the United States back to having the highest combined corporate tax rate in the developed world, 9 percentage points higher than the average of developed nations.
- This could reduce our economic growth by 0.8% and the capital stock by 2.1 percent.
Democrats’ tax hikes mean your utility bills will jump.
- Republican tax cuts enabled a drop in utility rates across the country, but Democrat tax increases will have the reverse effect.
Democrats’ tax hikes target small businesses.
- Nearly 1 million small businesses in our country are organized as “C corporations.” Biden’s proposal would increase their tax rate by 33 percent, at a time when many small businesses are struggling to recover from the pandemic.
- Many other American small businesses pay taxes as individuals, so Democrats’ forthcoming individual tax increases will ensure that no small business is exempt from Biden’s tax hikes.
Democrats’ tax hikes will send jobs and businesses overseas.
- Under our prior broken tax code, hundreds of billions of dollars and hundreds of companies each year fled to foreign countries.
- Republicans’ 2017 tax reform reversed that trend, bringing back companies and foreign earnings to be invested in the U.S.
- President Biden’s corporate tax proposal would turn back the clock and forfeit those gains.
Democrats want to make American companies pay higher taxes than their foreign-based competitors.
- In addition to giving the United States the highest combined corporate rate in the developed world, Biden wants to impose an uncompetitive minimum tax on American companies.
- America is the only country that now sets a minimum tax on the foreign earnings of domestic companies—now President Biden wants every country to impose such a tax, in exchange for his promise to keep the U.S. minimum tax higher than other countries.
- President Biden is promising to make American companies and workers uncompetitive.
Democrats think America should tax businesses at a higher rate than Communist China.
- China has a corporate tax rate of 25 percent, whereas President Biden wants to increase the American corporate tax rate from 21 percent to 28 percent.
Additional Democrat tax hikes will go after family farms, restaurants, and other small businesses.
- President Biden is proposing heaping more taxes onto family businesses by adding a second Death Tax that will increase paperwork and costs.
Democrats will also be seeking special tax breaks for the wealthy.
- Democrats are more willing to commit to numbers of electric vehicle charging stations than to estimating jobs created with $174 billion in electric vehicle subsidies for the wealthy.
- Some Democrats are digging in their heels and saying they won’t support the bill without $80 billion per year in special giveaways to the wealthy living in high-tax states—at a moment in which Democrats are attempting to prevent states from lowering taxes.
Democrats plan to ding people with retirement accounts.
- The left-leaning Tax Policy Center notes that middle-class families would be harmed by the Biden corporate tax hike, as 53 percent of American households own stock.
The New York Post Editorial Board excoriated Biden’s plan to drop $4T in new spending on top of the nearly $2T that Democrats just rammed through on a party line vote, and outlined the economic consequences the country could face as a result of this legislation:
- NY Post (Editorial): “Biden’s insane new spend-fest is a recipe for national disaster”
- Fresh off signing a $1.9 trillion bill for “COVID relief” (that has little to do with COVID or relief), the prez is now set to roll out yet another tranche of his free-money orgy Wednesday. It’s so huge, he’s splitting it into two parts — one focusing on infrastructure, a second on progressive, social-policy wish-list items.
- And to help this massive spending, Biden will slam taxpayers with trillions more in taxes, particularly on companies and the rich. That’s guaranteed to slow the economy, leading to income stagnation for lower earners, just as President Donald Trump’s tax cuts prompted big gains for working stiffs.
- The voters did not remotely ask for anything like this; most just wanted Trump gone. And they certainly don’t deserve the damage it will do to the nation. Yet Democrats will aim to ram it through with whatever tricks are needed — unless their moderates rise up to rein in their suddenly radical leader.
Even the original co-sponsors of the Green New Deal openly admit that this bill, which could cost upward of $4 trillion, is designed to fulfill their pie-in-the-sky fantasies that will dramatically increase government’s role in our economy and eliminate millions of jobs:
This proposal is yet another example of President Biden going back on his word to seek bipartisanship and attempt to unify the nation. Just like with the Payoff to Progressives, Democrats did not incorporate any input or ideas from Republicans in this Green New Deal bill and the composition of it makes it clear that they are more focused on forcing through their bad policy agenda than working in a responsible way to help the nation.